BUA Cement Grows Profit by 60% to N463.1bn in Nine Months

The Nigerian cement manufacturer, BUA Cement Plc, reported a significant increase in its profit for the nine months ended September 2026. The profit after tax reached N463 billion, which is approximately 60% higher than the N289.6 billion reported for the same period in 2025. Additionally, profit before tax for the nine months of 2026 stood at N556.7 billion, marking a 64.4% growth from N338.6 billion in the corresponding period of 2025.

The performance of the company was impressive, with three consecutive quarters of volume growth. This growth was observed despite adverse weather conditions such as heavy rainfall and poor road conditions. Moreover, the company's focus on operational and financial efficiencies played a crucial role in these results.

Despite some challenges in the last quarter, revenue for the nine months of 2026 rose to N1.1 trillion, representing a 26.5% increase from N858.7 billion in the same period of 2025. This growth was primarily driven by continued expansion in bulk cement sales. The cost of sales for the nine months of 2026 was N466.4 billion, up by 8.8% from N428.6 billion in the same period of 2025.

This increase was partly due to an unfavorable energy mix, operational challenges, and higher prices linked to geopolitical tensions in the Middle East.

However, the gross profit and EBITDA margins improved by 7.0 and 6.3 percentage points to 57.1% and 52.7%, respectively. This improvement was attributed to lower O&M service charges and cost savings resulting from the introduction of LNG-powered trucks. The return on equity and asset were also impressive, standing at 63% and 27.4%, respectively. These metrics reflected further enhancements in operating margin, asset turnover, and interest burden.

Speaking on the results, BUA Cement's Managing Director/CEO, Yusuf Binji, expressed satisfaction with the company's performance. He attributed the success to resilience, even in the face of challenging conditions, particularly heavy rainfall and its impact on road infrastructure. Binji highlighted that the company surpassed its 2025 performances through the addition of bulk customers, the acquisition of LNG trucks, and the restructuring of logistics operations.

He emphasized that the LNG trucks are environmentally friendly, thus reducing the company's carbon footprint while leveraging the country's abundant gas reserves. This investment would also improve market penetration and operational efficiency. Binji acknowledged that energy costs had been elevated due to supply constraints but have since stabilized.

He concluded by stating that the company remains committed to achieving its objectives through profitable partnerships with distributors and sustained efforts to reduce the cost to serve in the coming quarters.